Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Collin Plume
Bitcoin sinking through water as illustration of falling price

The Winter Olympics are over for another four years. Athletes in svelte ski suits (or Marvel outfits – in the case of the American team) thrilled everybody, with some fairly breathtaking maneuvers down the snow-covered slopes of PyeongChang, in South Korea. The times in the giant slalom event were crazily fast. Zipping between the flags and defying gravity, to swing one way or the other, whilst hurtling down a hill takes nerves of steel. And practice. And planning.

However much you twist and turn, your ultimate direction – in any form of skiing – is down. Even the youngsters, on the half-pipes, with their snowboards followed the huge jumps with huge falls, eventually running out of steam at the end of their run – gravity is an inevitability in the Winter Olympics it seems.

Know where Bitcoin is headed? Take advantage now with 

75% of retail CFD investors lose money

Technology can help to overcome some of the forces at work – carbon fiber skis cut through snow and ice far better than wooden skis – and the sleek, designer overalls – cut down wind resistance and help gain the hundredths of a second which can mean the difference between a gold and a silver.

In the same way – we can use the technology of electronic indicators, and clever projections, to help us try to minimize losses, and increase gains – but we cannot deny or overcome trends. If the market is moving up – it is moving up – if it is moving down – well, you see what we mean …

Bitcoin Daily Chart

This is where we find ourselves right now. The trend is obvious. We see two ways this can play out …

The first is a retest of the lows of February. The chart is forming, what may become, a classic “double bottom” pattern. This is a powerful reversal signal – by this, we mean a reversal of the trend. The trend is down, or negative.

Bitcoin Daily Chart

Here we can see the trend clearly since Christmas – except for the bounce in February, and the slight retrace last week – this trend is obviously down.

At 1) and 2) the price formed a “double top” – and looks to be shaping an “M” pattern with a “double bottom,” at 3) – and possibly 4).

We need to be aware that the price may well bounce higher from the second low of around $6,000 – and, because of the power of the signal, the rise – if this happens – will be rapid …

The second scenario is a rise through the current resistance level – and psychological barrier at $10,000.

Bitcoin Daily Chart

Once through this barrier, at 2) the price may rise from the low, at 1) back up again, to 3) once buyers get onboard again.

It has been a scary ride for the new and amateur investors, who make up the bulk of Bitcoin buyers – there are very few institutional holders. This has advantages and disadvantages.

On the one hand, there are no “high-frequency traders” here – on the other – many Bitcoiners are first-time investors, with no experience of falling markets, risk strategies, and stop losses. This means many – having bought at around the $20,000 mark – have lost considerable sums of money. This will make them extremely reluctant to get back in the ring.

If Bitcoin does follow the first scenario (and this is looking more likely by the day) there will be a lot of panic selling and anguish – the exact time the professional investors will step in to mop up the bargains.

Noble Gold specializes in IRAs and 401(k) rollovers through precious metals and cryptocurrencies investments.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.